Genesis Microchip buys Smart Yantra

BANGALORE: Nasdaq-listed Genesis Microchip, the supplier of display image processors for the consumer electronics industry, has acquired Bangalore-based Smart Yantra Technologies, a software service outfit that designs and develops solutions for video streaming  an efficient way for broadcasting video over the internet.

Genesis India officials confirmed the development, but declined to specify the financial aspects of the deal. Smart Yantra is a good fit for Genesis as its solutions are targeted at the consumer electronics market. The company is said to have around 30 employees who will now become a part of Genesis Indias 100-plus team.

The solutions that Smart Yantra develops are based on programmable digital signal processing (DSP) and targeted at applications such as digital video surveillance, broadcasting and internet video streaming. Eric Erdman, CEO of Genesis Microchip, in his last visit to India had told ET that Genesis will soon complete the acquisition of a domestic software firm.

Mergers and acquisitions are becoming common in the domestic software services industry and analysts predict the momentum will continue for a while. For companies like Genesis, which are into semiconductors, Bangalore offers a rich crop of small and medium-sized embedded solution firms that are ideal acquisition targets.

Genesis, like many other MNCs, follows the acquisition route to speed up growth. In 1999, it merged with Paradise Electronics to become a provider of integrated mix- ed-signal flat-panel monitor controllers. Three years later, it acquired Sage, a provider of digital display processors, with a strong development presence in Bangalore.

Mr Erdman had stressed on the important role that India plays in the product roadmap of Genesis.

The companys largest selling chip, FLI 2300, which is used by digital video disk and LCD (liquid crystal display) television makers was wholly developed in India.

Genesis chips go into most of the LCD monitors sold across the globe. LCDs are fast replacing the common CRT (cathode ray tube) monitors. Its chip solutions are used by display makers to produce visibly better images across a broad array of devices including flat panel displays, digital TVs, projectors and digital video disk players and recorders.